With both pickup truck and electric vehicle sales trending upward in the US, Lordstown Motors believes it can generate $118 million in revenue next year and $1. 7 billion in revenue in its first full year of sales in 2022, according to the presentation.
Burns and Lordstown Motors also agreed to give Workhorse 1 percent on every Endurance truck sold (for the first 200,000) and 1 percent of any debt or equity financing — meaning Burns’ old startup also stands to benefit from Lordstown Motors going public.
Workhorse sold the intellectual property for its pickup truck to Lordstown Motors for $15. 8 million and took a 10 percent stake in the new startup.
One-year-old Lordstown Motors will become a publicly traded company in an effort to bring its commercial electric pickup truck, the Endurance, to market.
Burns said at the Endurance unveiling that his startup is “going to beat everyone to market,” though, and believes Lordstown Motors has an advantage in focusing on making purpose-built work trucks and selling them only to fleets.
The deal is expected to close in the fourth quarter of 2020 and would provide Lordstown Motors with around $675 million in funding — more than the $450 million that CEO Steve Burns told The Verge he felt was needed to get the Endurance into production by the middle of 2021.
Lordstown Motors is entering what is shaping up to be a highly competitive slice of the EV market, with electric pickup trucks coming from Tesla, Ford, GM, Rivian, and Nikola.
That could come in handy, as Lordstown Motors says it is a “candidate” for a roughly $250 million loan from the DOE’s Advanced Technology Vehicles Manufacturing (ATVM) program — the same program that helped put Tesla on the map a decade ago.
The other $50 million comes in the form of “plant assets,” “plant permits,” and operating costs at the factory that GM has covered since Lordstown Motors took over in November 2019.
Lordstown Motors will use “GM components” in the Endurance, as the Detroit automaker is hooking the startup into its Tier 1 supply chain.
Workhorse had spent years developing a pickup truck alongside its commercial electric trucks and vans, but it languished as sales dried up and a bid for the next-generation United States Postal Service vehicle stalled.